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KLR Group Downgrades Synergy Resources Corporation (SYRG) to Accumulate

November 19, 2015 8:12 AM EST
Get Alerts SYRG Hot Sheet
Price: $8.13 --0%

Rating Summary:
    18 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 3 | New: 1
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KLR Group downgraded Synergy Resources Corporation (NYSE: SYRG) from Buy to Accumulate and maintained a price target of $14.00.

Analyst John Gerdes commented, "SYRG has appreciated over 20% since late September, outperforming the E&P sector by over 10% and now reflects less than 20% equity value upside thus requiring a downgrade to Accumulate. Our pre-acquisition FY’16 production expectation of ~11.6 Mboepd is ~5% above company guidance (~11 Mboepd). Our economic model contemplates a one-rig Wattenberg program next year, a two to three-rig program in FY’17 and a three to four-rig program in FY’18. Largely owing to a superior cash margin (lower expense structure), Synergy’s mid-cycle capital yield is ~140%, which compares favorably to its DJ Basin peers (100%-140%) and to the industry median (~120%)."

For an analyst ratings summary and ratings history on Synergy Resources Corporation click here. For more ratings news on Synergy Resources Corporation click here.

Shares of Synergy Resources Corporation closed at $11.95 yesterday.



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